Herbers & Co. conducted a recent survey of investors with more than $250,000 in assets alongside advisors to discern if advisors’ services align effectively with clients’ needs. Undoubtedly, the most conspicuous revelation is the evident misalignment between advisors and clients in specific areas.

A notable shift observed in the survey, in contrast to previous years, is that 90% of clients currently prioritize effective tax planning. Historically, clients highlighted concerns such as retirement, investment management, and cash flow. Curiously, only 73% of wealth management firms presently provide tax planning services. This discrepancy presents a promising opportunity for advisors to broaden their service offerings by integrating comprehensive planning solutions encompassing cash flow management, education, estate planning, investments, retirement planning, and tax management.

Despite many wealth management firms self-identifying as offering comprehensive planning, the survey revealed that merely 31% of them do so in reality. This deficiency underscores the need for tailored planning addressing unique client needs, including business planning for entrepreneurs.

Furthermore, the survey unveiled a growing client interest in alternative investments, notably cryptocurrencies. However, a significant challenge emerges as most firms presently do not provide advisory services in these unconventional investment avenues. Given the rising popularity of cryptocurrencies and the recent introduction of crypto ETFs by asset management giants like Blackrock and Fidelity, advisors can anticipate a surge in client inquiries regarding this asset class. The onus is on advisors to brace themselves for these impending conversations.

Finsum: An extensive survey encompassing both clients and wealth management firms has underscored areas where advisors can enhance their comprehension and response to client needs.

• advisors
• clients
• wealth management
• tax management